Chidambaram urges banks to go easy on hard up borrowers -Business Line
MUMBAI, MAY 25:
Finance Minister P. Chidambaram has urged bankers to make a distinction between those borrowers who have defaulted due to the slowing economic cycle and wilful loan defaulters.
“NPAs (non-performing assets) are not unusual and will remain when the economy is not performing well. Banks cannot abandon their clients but should hold their hand.
“As the economy improves, business improves, ‘mostly’ the non performing loans will get paid,” Chidambaram said in his speech at the inauguration of Canara Bank’s circle office in Mumbai.
Pointing out that cash recovery is taking place in most banks, Chidambaram said what this means is that people are paying off their loans. He said that last year was a difficult period for banks.
“We expect the economy to grow by at least one per cent (percentage point) more than last year. Next year, it is expected to grow higher by another one per cent. Also, once we reach our potential growth rate of 8 per cent, the challenges will only grow,” said Chidambaram, who will be in Dubai on Sunday to showcase the India growth story to foreign investors .
The Central Statistics Office has put out the advance estimate of GDP growth for last year (2012-13) at 5 per cent.
RBI will take some time to act against banks flouting KYC norms
MUMBAI, MAY 25:
The Reserve Bank of India may take some time to act against banks violating the know-your-customer (KYC) norms, according to Rajiv Takru, Secretary, Department of Financial Services.
“We should not expect any action from the RBI in the next week or 10 days. The Board of Financial Supervision in the RBI has to follow a certain process,” he said.
Once the banks give their detailed responses to the show-cause notices, the apex bank will examine them and then decide on the line of action, he said.
Expressing disappointment over banks flouting KYC norms, Takru clarified that the degree of overall KYC conformity of scheduled commercial banks is good.
“The system by and large is sound. It (existing regulations) was more a result of perhaps inadequate attention to existing rules and regulations,” he added.
On raising the quantum of penalty to be imposed on banks, Takru said the amount of Rs 1 crore is “insignificant” in the present day context, and rules need to be changed to hike the penalty.
LPG SUBSIDY
“It requires a change in the rule. As soon as the limit is increased, you will see heavier fines,” he added.
Asked about the preparedness of the Government and banks to handle the transfer of liquefied petroleum gas (LPG) subsidies directly into bank accounts of consumers, Takru said it will depend on the database provided by the oil and marketing companies (OMCs).
“There are 14 crore LPG customers out there and we are awaiting the database from OMCs. Once the database comes, we have to give it to branches and then the Aadhaar number and the bank account numbers to each customer,” he said.
The Central Government will roll out the next phase of direct benefits transfer, including LPG subsidy, in 78 more districts from July 1. This is in addition to the 43 districts the Government started to cover during phase-I.
http://www.thehindubusinessline.com/industry-and-economy/banking/rbi-will-take-some-time-to-act-against-banks-flouting-kyc-norms/article4750611.ece
Lacs of cases against defaulters of the bank and against NPA borrowers have been filed in various local courts, district courts, Lok Adalats, Ombudsmen, High courts, Supreme court, Debt recovery Tribunals, District Certificate Officers, District magistrate’s court , Sub Divisional Magistrate’ court for taking possession of property seized under SERFAECI act etc have been filed by various financial institutes including public sector banks but due to manpower shortage or due to inefficiency of executives, or due to malicious intention of magistrates and judges, or due to conspiracy of advocates in nexus with judges and magistrates cases are lying pending for years together.
Is there any provision to take action against judges who in nexus with advocates are willfully delaying the process of justice?
Reasons Behind Rise In Bad Debts In Banks
Lacs of cases against defaulters of the bank and against NPA borrowers have been filed in various local courts, district courts, Lok Adalats, Ombudsmen, High courts, Supreme court, Debt recovery Tribunals, District Certificate Officers, District magistrate’s court , Sub Divisional Magistrate’ court for taking possession of property seized under SERFAECI act etc have been filed by various financial institutes including public sector banks but due to manpower shortage or due to inefficiency of executives, or due to malicious intention of magistrates and judges, or due to conspiracy of advocates in nexus with judges and magistrates cases are lying pending for years together.
Is there any provision to take action against judges who in nexus with advocates are willfully delaying the process of justice?
Click on following link to read more
Is government Really Tough Against Bad Borrowers of Banks?
In tough times, Finance Ministry plans to crack down on loan defaulters--Economic Times
Chidambaram takes a dig at corporate defaulters, asks banks to lend to poor
24th October 2012
NEW DELHI: Finance Minister P Chidambaram has made a strong pitch to banks to lend more to the poor, labelling them 'honest' and 'ethical' as he painted a picture of contrast with corporate borrowers.
"In fact, a big business house can easily raise a thousand crore rupees... They can even not pay their loans," he said at a business gathering. "The story is that if you are a small borrower you go after the bank and if you are a big borrower, the bank is to go after you."
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